American automaker Ford has kicked off commercial production of its first European-assembled electric car, the Explorer, at its Cologne, Germany factory.
This move is a significant step in Ford’s effort to catch up in the highly competitive European electric vehicle (EV) market.
Cologne Factory Transformed for Electric Era
The historic Cologne site, initially opened in 1930, has undergone a major transformation this year. With a €1.8 billion investment, it’s now fully dedicated to electric vehicle production.
The sporty crossover, named “Explorer,” starts at €43,900, the same price as Volkswagen’s ID.4. Depending on the version, it boasts a range of up to 600 kilometers on a single charge. This is Ford’s second electric car model in Europe, following the Mexico-made Mustang Mach-E.
More Electric Models on the Horizon
Ford plans to launch another electric model in Cologne this summer, according to Anna Lena Strigel, Ford’s European sales director. Additionally, an electric version of their compact Puma car is slated for next year.
Ford’s European Restructuring for an All-Electric Future
Ford is restructuring its European production with a clear goal: to be all-electric by 2035, in line with the European Union’s ban on non-electric car sales. This includes closing their Saarlouis plant, where the Ford Focus is currently manufactured, by the end of 2025.
Overcoming Challenges and Embracing the Electric Shift
While acknowledging Ford’s late entry into the European EV market, Strigel emphasizes their rapid progress. Ford aims to differentiate itself through its established dealer network, a key advantage over emerging Chinese brands struggling to build their own networks in Europe.
Addressing Market Trends and Production Capacity
Ford, like its competitors, is also navigating the slower-than-expected growth in demand for electric vehicles in Europe. Despite electric cars capturing 14.6% of the European market in 2023, developing affordable entry-level models remains a challenge for manufacturers.
Partnership with Volkswagen for Cost Efficiency
To reduce costs, Ford has partnered with Volkswagen, utilizing their “MEB” component architecture, which includes batteries produced by China’s CATL. The Cologne site, inaugurated last summer by German Chancellor Olaf Scholz, experienced a production delay. This was due to the decision to wait for the newer, safer, and more durable “lifepo4” (Lithium-iron-phosphate) battery technology.